AUD/JPY jumps to one-week high

AUD/JPY above 88.00 levels.
Through a cluster of Fib levels.
Australia motor vehicles number goes unnoticed.

Omkar Godbole FXStreet Contributor

The AUD/JPY chewed through a cluster of Fib levels - 87.97 (23.6% Fib R of Nov-Jan rally) and 88.03 (61.8% Fib R of Sep-Nov drop) earlier today and rose to a one-week high of 88.23 levels.

As of writing, the currency pair is well bid at 88.18 levels. The uptick seen today is largely due to the 0.17 percent rise in the USD/JPY. Meanwhile, the AUD/USD is flat-lined around 0.7964. That said, it was the sharp rise in the AUD/USD pair (0.78 to 0.7979) that helped AUD/JPY stage a solid rebound from 87.21 levels (100-day MA on Jan. 10).

The official data released in Australia showed motor vehicle sales rose 4.5 percent month-on-month and 6.7 percent year-on-year (compared to previous figures of 0.1 percent and 2.1 percent). However, the data has not had any impact on the AUD pairs.

Ahead in the day, the cross may remain well bid as copper prices are trading near four-year highs. Further, the Bloomberg commodity index is up more than 5 percent on a monthly basis. Still, a pullback cannot be ruled out as analysts believe the rally in AUD/USD is overstretched.

AUD/JPY Technical Levels

A move above 88.37 (61.8% Fib R of Jan. 5-Jan. 10 drop) would expose 88.65 (76.4% Fib R) and 89.09 (Jan. 5 high). On the downside, breach of support at 87.98 (session low) could yield a pullback to 87.63 (Jan. 2 low) and 87.24 (100-day MA).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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